“The Sesame That Opens the Door of Trade:” John Hays Hammond and Foreign Direct Investment in Mining, 1880–1920

Abstract

In the last decades of the nineteenth century, American mining engineers fanned out around the globe to potential or existing mines in China, Mexico, Siberia, South Africa, and beyond. This article examines the rise and work of mining engineer John Hays Hammond and the mining engineers, geologists, and capitalists with whom he worked. The paper reveals ways that a segment of the investor class depended upon members of the emerging professional middle class of university-trained mining experts for collaboration—and even inspiration—regarding possible sources of remunerative investment. The search for raw materials abroad opens up a chapter in the history of U.S. capitalism in which mining engineers like Hammond encouraged and facilitated a new phase of export of redundant U.S. capital and manufactured goods in a direction where investment would be secure, labor recruitable, and profits attractive and subject to repatriation. Filling in this vital narrative makes an essential contribution to the ongoing recovery of the history of the U.S. and world capitalism in the era of rapid industrialization.